Case Law Details
Deccan Paper Mills Co. Ltd. Vs CIT-IV (ITAT Pune)
Now, coming to the aspect of book profits which was considered by the Commissioner and the order of the Assessing Officer was held to be erroneous and prejudicial to the interest of revenue. In this regard, it may be pointed out that the case of assessee was picked up for scrutiny under CASS for the limited purpose of verifying the Chapter VI-A deduction. Once the case is picked up for specific purpose under CASS, then it is outside the purview of the Assessing Officer to look into any other aspect other than the aspect for which it is picked up. Hence, the Assessing Officer has not formed any opinion in respect of computation of book profits in the hands of assessee. Once, no such opinion has been formed by the Assessing Officer, the Commissioner has erred in holding the order of the Assessing Officer to be erroneous and prejudicial to the interest of revenue in this regard. Accordingly, we reverse the findings of the Commissioner.
Accordingly, we hold that the order passed by the Commissioner under section 263 of the Act is invalid and the same is quashed for both the assessment years.”
FULL TEXT OF THE ITAT JUDGEMENT
Both the appeals filed by the assessee are against separate orders of CIT-IV, Pune, dated 11.03.2014 and 16.07.2014 relating to assessment years 2009-10 and 2010-11 passed under section 263 of the Income Tax Act 1961 (in short the ‘Act’).
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